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Amazon, IKEA join other ocean cargo shippers to boost demand for new green fuels
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Amazon, IKEA join other ocean cargo shippers to boost demand for new green fuels
Nov 13, 2024 3:23 AM

Nov 13 (Reuters) - Amazon.com ( AMZN ) and IKEA, in alliance with

about three dozen other companies that depend on ocean freight,

will invite shipping firms for the first time to bid on a

contract in January to move their cargo on vessels powered by

near-zero emissions e-fuels like e-methanol.

The group known as the Zero Emissions Maritime Buyers

Alliance wants to use the combined clout of its members, who

have their own climate goals to meet, to create demand for

e-fuels made with renewable electricity and carbon dioxide.

Those fuels are in very short supply.

The alliance wants to accelerate the ocean shipping

industry's move toward net-zero greenhouse gas (GHG) emissions

by 2050, even as U.S. President-elect Donald Trump is expected

to pull out of international commitments to combat global

warming.

The world's fleet moves more than 80% of global trade

and contributes about 3% of the world's GHG emissions. E-fuels

are vital to fully decarbonizing ocean shipping because they

have long-term potential to compete against fossil fuels on cost

and supply, the alliance said.

"This is how you get on path and on track to being

net-zero," said alliance member Carl Berger, who leads

sustainability and export operations for Amazon Global Logistics

.

The group's three- to five-year contracts for e-fuel

transport are expected to begin in 2027.

The cargo moved under the contract is estimated to be

equivalent to at least 1.4 million 20-foot containers

transported from Shanghai to Los Angeles. That would enable

members to abate some 470,000 metric tonnes of GHG emissions

that warm the planet and harm human health, the group said.

Carriers such as Maersk, Evergreen

and Ocean Network Express (ONE) have ordered ships that can

operate on e-methanol and are working to secure supplies of that

fuel.

While alliance members hope their collective action will

lower the cost of e-fuels, they expect to pay an undisclosed

premium to help offset the higher cost versus fossil fuel.

"Once that market gets going we'll start to see those costs

come down," alliance CEO Ingrid Irigoyen said of e-fuel.

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